In a CVP Graph,the Area Between the Total Cost Line

question 89

Multiple Choice

In a CVP graph,the area between the total cost line and the total revenue line represents total

• A)contribution margin.
• B)variable costs.
• C)fixed costs.
• D)profit.

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Definitions:

Indifference Curve

A graphical representation showing combinations of goods or services among which a consumer is indifferent, depicting preferences for consumption bundles.

Apples

Edible fruits produced by an apple tree, known scientifically as Malus domestica, and popular worldwide for their sweet taste and nutritional benefits.

Bananas

A popular fruit that is long and curved with a soft flesh covered by a yellow peel when ripe.

Utility Function

A mathematical representation that quantifies an individual's preference for various outcomes or goods, indicating their level of satisfaction.